"The Chinese government is becoming more and more open. For example, they consult global companies on certain legislation, such as the new Labor Law. The government is working on how to best utilize foreign investment... they would like to see more investment in R&D."

-RUEY BIN KAO, PRESIDENT, MOTOROLA CHINA

"China remains a gigantic and promising market, and we assume this will not change in the future. By making the best use of capable local human resources, Panasonic will further strengthen R&D activities, which accords with the incentive policies of the Chinese government. We see the Beijing Olympic games in 2008 and the Shanghai Expo in 2010 as two big opportunities to further strengthen our activities in China."
-IKUSABURO KASHIMA, DIRECTOR, MEMBER OF THE BOARD AND DEPUTY CHIEF OF OVERSEAS OPERATIONS, MATSUSHITA ELECTRIC INDUSTRIAL CO. LTD.

"Energy-saving functions and e-waste requirements are often higher priorities throughout Asia, and in recent years well integrated into the premium tiers of Chinese companies. The same is becoming true of the 'cutting-edge' product designs now coming from the premium tiers of Chinese manufacturers. They aren't regionalized designs or regionalized copies anymore."
-JOHN MERRELL, VICE PRESIDENT, PRIME TECHNOLOGY INC.

"It becomes more important to [bring] one-of-a-kind-products into the market and to establish good relationships with distributors.... Also, brand power will be more important to meet consumers' [preferences]."
-NOBUYUKI SUGANO, GROUP DEPUTY GENERAL MANAGER, CHINA, SHARP CORP.

"If you're trying to sell within China, make sure you have extremely reputable distributors who have been around a long time. Make sure you've negotiated all the financial terms up-front. Be prepared for longer receivable times, up to 90 days [compared to 30 to 60 days in North America, Japan or Korea]."
-BEN SILVA, VICE PRESIDENT, TVIA INC.

"We opened an office in Beijing in 2003, staffed by Chinese nationals who already had relationships and strong knowledge in our target markets. That enabled us to avoid the learning curve that can be particularly painful in China when you consider the sometimes Byzantine bureaucracy where different state agencies have overlapping jurisdiction. Without [this Chinese staff] we would not be able to effectively go after the type of large deals that have long sales cycles."
-ANKUR SHETH, CEO, DG2L TECHNOLOGIES

"Enforcing laws or policies within China is a very cumbersome matter. A lot of patents are held by foreign companies within China. Sometimes you're fighting against local manufacturers, which are state-owned. China is changing, but it is slower than people anticipate."
-RICHARD HOUNG, CEO, WESTINGHOUSE DIGITAL

"China does have a big market for high-end products. ... Chinese culture is such that people view their value more through the eye of others. High-end products can obviously help."
-AARON TONG, VICE PRESIDENT, TTE

"Competition is much fiercer than before. The LG China R&D Center is developing new products to better meet the needs of Chinese consumers."
-NAM K. WOO, CEO/ PRESIDENT, LG ELECTRONICS-CHINA   V

January/February 2007